Sales: $13.0 billion
Key Personnel: Kasper Rorsted, chief executive officer; Hans Van Bylen, executive vice president, beauty care; Bruno Placenza, executive vice president, laundry and home care; Carsten Knobel, executive vice president, finance and purchasing; Kathrin Menges, executive vice president, human resources and infrastructure services.
Major Products: Household—Mir, Persil, Perwoll, Purex, Sil, Spee and Vernel laundry detergents, Pril and Pur dish detergents, Bref and Soft Scrub hard surface cleaners, Somat automatic dish detergent. Personal Care—Schwarzkopf & Henkel, Schwarzkopf, Indola, Clynol, Seah Hairspa, BC Bonacure, Clynol hair care products; Dial, Fa and Right Guard, Tone, La Toja, Neutro mend, Coast, Dry Idea and Mont St. Michel body care products; Aok and Diadermine skin care products; Licor del Polo, Antica Erboristeria, Vademecum, Theramed and Denivit oral care products
New Products: Household—Persil Duo-Caps liquid detergent, BrefWC Frisch Power Aktiv toilet cleaner
Comments: Corporate sales rose 5.8% to $26.6 billion—which was enough for CEO Kasper Rorsted to declare, “2012 was the most successful year for Henkel so far. We achieved excellent results in a highly volatile and competitive market environment and met or exceeded all financial targets.”
Laundry and home care sales rose 5.9% to $7.3 billion, with all regions providing a lift. Western European economies remained under pressure, but sales rose thanks to good gains in Germany, France and Italy. Sales in North America were also up and sales in emerging markets increased by a high single-digit percentage.
Beauty care sales were up 4.2% to $5.7 billion. Sales in Europe were flat, but business was brisk in emerging markets, especially in China and Africa/Middle East, where Henkel posted a double-digit gain.
Last year, Henkel spent $655 million on R&D, but 63% of that went to the adhesives group. Laundry and home care accounted for 23% of R&D spending and beauty care just 14%.
Back in 2008, Henkel set some aggressive growth goals for 2012 and managed to achieve and surpass all of them. For instance, it aimed for annual organic sales growth of 3-5% and achieved 3.3%; aimed for adjusted return on sales of 14% and achieved 14.1% and aimed for annual growth in adjusted earnings per preferred share of great than 10% and came in at 14%.
All good stuff, but now it’s time to raise the bar. So, by 2016, the company expects to have:
- Annual sales of €20 billion (or more than $32 billion at 2012 exchange rates);
- Annual sales in emerging markets of €10 billion; and
- 10% earnings per share.
- Progressive consolidation among competitors, customes and suppliers, as size becomes an increasingly important factor in Henkel’s ability to compete over the long term.
- A continuing shift to emerging markets.
- Speed and volatility of markets will continue and may even increase, requiring processes and structures that more flexible and efficient.
Corporate sales rose less than 1% in the first quarter to $5.1 billion, but organic sales growth was up 2.5%. Laundry and home care registered organic growth of 8.0%. Beauty care organic growth was 4.0%.
“We increased both sales and earnings in the first quarter of 2013 despite a challenging market environment with declining markets in Western Europe and weak global industrial demand,” said Rorsted. “Both laundry and home care and beauty care outperformed their relevant markets.”